The pair plan to launch Afrezza in the first quarter of 2015, and hope that its relative convenience and rapid action will give it an edge over injectable insulin.
However inhalable insulin is dogged by concerns that it could increase the risk of lung diseases. Afrezza will come with a warning that it could increase bronchospasm - constriction of the airways - in patients with asthma and chronic obstructive pulmonary disease.
Pierre Chancel, senior vice president of Sanofi's diabetes division, said the product would add to the company's growing portfolio in the disease area. Sanofi is currently the world's second biggest provider of diabetes treatments.
"[Afrezza] is uniquely positioned to provide patients with another insulin therapy option to manage their diabetes but does not require multiple daily injections,” he added.
Diabetes affects an estimated 382m people worldwide have diabetes and the number of cases is expected to rise to 592m by 2035, according to the International Diabetes Federation. Type two diabetes, which is associated with obesity, accounts for the vast majority of cases.
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